Patents allow manufacturers to block the entry of new firms into an industry through
a. infringement suits
b. economies of scale
c. limit pricing
d. price discrimination
e. a government franchise
A
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When the real wage is below the equilibrium price in the labor market ________
A) we have an excess supply of labor and the real wage should fall B) we have an excess demand of labor and the real wage should fall C) we have an excess demand of labor and the real wage should increase D) we have an excess supply of labor and the real wage should increase E) none of the above
The official reserve transactions balance in the United States balance of payments accounts is
a. reflects the difference between government spending and total taxes. b. negative if a current account deficit exceeds a capital account surplus. c. positive if a current account deficit exceeds a capital account surplus. d. none of the above
Crunchy Chips is a potato chip manufacturer. To produce the chips, Crunchy Chips needs to first peel and slice the potatoes and then fry them within two minutes of slicing to prevent browning. If Crunchy Chips is unable to fry the potatoes within two minutes, it must freeze the chips and later defrost them to fry them. Which of the following is true for Crunchy Chips?
A) Crunchy Chips faces a hold-up problem. B) Crunchy Chips has production technological interdependency. C) Vertically integrating the slicing and frying process will increase production costs. D) Crunchy Chips has no production technological interdependency.
Two economists, Smith and Jones, are discussing the currently high unemployment rate. Smith says that something ought to be done quickly because the economy may not be able to restore itself to full employment. Jones says that it is better to take a "hands-off" approach. Which of the following is most likely to be true?
A) Smith and Jones are most likely both Keynesian economists with a few minor differences of opinion. B) Smith and Jones are most likely both classical economists with a few minor differences of opinion. C) Jones is likely to be a Keynesian economist and Smith is likely to be a classical economist. D) Smith is likely to be a Keynesian economist and Jones is likely to be a classical economist. E) none of the above.